Cramer's Insider Buying List
Although stocks rallied on Thursday, Cramer still suggested investors operate under 2008 rules, meaning he would stay cautious and protect your portfolio.
Over the past few days, the "Mad Money" host has talked a lot about his shopping list, consisting of International Paper , Bristol-Myers , Enterprise Products Partners , Verizon , Darden and Kimberly-Clark . On Thursday's program, he kept with the theme of the shopping list. When Cramer ran a hedge fund, he would try to meld the prevailing themes with stocks that fit them.
So what themes is he looking at today?
First, he's looking for dividend-paying stocks. Second, he wants to overlay what he heard during earnings season, which just wrapped up. Finally, there has been a lot of insider buying lately—the heaviest amount Cramer's ever seen. So he wants to find companies where insiders are buying a lot of stock. These individuals can't trade. They have to invest, meaning they have to wait at least six months before they sell, so they don't buy unless they have some longer-term visibility into the company's future.
With that in mind, what did Cramer find?
Equity One : This shopping center real estate investment trust recently reported a quarter that caused negative and neutral analysts to raise their numbers. On Monday, the chairman bought $5.5 million worth of stock. Cramer thinks this company might be on the mend and otherwise likes its 5 percent dividend yield.
Dominion Resources : Not only is this an excellent utility, Cramer said it has considerable exposure to some of his favorite shales, including the Marcellus. In the past few days, five officers purchased stock in this 4 percent yielder, including its CEO and chief financial officer.
NuStar Energy : A limited partnership, NuStar stores energy in 65 terminals, which can handle 80 million barrels of oil. It also provides fuel transportation with more than 5,000 miles of pipeline. Earlier this week, the chairman of the board purchased $659,000 worth of stock. It yields 7.5 percent.
Windstream : Rural telephone company Windstream reported good numbers recently and announced an acquisition that gets it into the hottest area of tech: the data center. On Monday, the chairman of the board bought $111,000 worth of stock. The next day, the President and the CEO each picked up $205,000 and $56,000 in stock respectively.
Honeywell : The director picked up $99,000 worth of stock. This is one of Cramer's faves. It's been executing on a five-year plan for growth and this vicious market has brought the stock down to a level where it yields nearly 3 percent. He thinks now is a great time to start buying.
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